Finance for Scale

We create the conditions necessary for large-scale investments in proven models. Through partnerships with the World Bank, multilateral development institutions, and the private sector, we replicate and scale successful models for broader impact.

Aerial view of a drinking water treatment plant in an urban area.

The Case for Scaling Finance

The global water sector faces a significant financing gap, with an estimated $6.7 trillion needed by 2030 and $22.6 trillion by 2050 to meet infrastructure demands. Yet, current annual spending in the sector amounts to only $0.164 trillion. Scaling finance for water projects has been challenging due to the undervaluation of water, high transaction costs in public-private partnerships, and the limited capacity of water service providers to attract private investment. Rising debt levels and capital costs further complicate access to financing. 

Private sector involvement is crucial to bridging the investment gap in the water sector. Leveraging private sector financing, innovation, and expertise is essential for both mobilizing the capital required as well as to professionalize the sector and meet the water-related Sustainable Development Goals.

Our Approach

As a multi-donor trust fund hosted by the World Bank Group, we are uniquely positioned to connect successful water initiatives to large-scale World Bank financing. With a portfolio of nearly $30 billion and the presence of water experts globally, the World Bank’s Global Department for Water leads efforts to develop and scale water projects around the world. The Bank’s work goes beyond financing, providing technical assistance, global knowledge sharing, and on-the-ground implementation support. WRG connects its innovative solutions with the Bank’s vast operational capacity to maximize impact.

Key elements of our approach include:

Demonstrating Financial Viability

We pilot public-private partnerships and blended finance models to establish a track record of financial sustainability. By balancing risks between public and private partners, we help make water projects bankable. Once financial viability is proven, we connect these projects to larger capital sources, enabling them to be replicated and scaled across regions.

Mobilizing Diverse Sources of Finance

We facilitate access to multiple financing solutions, including support for de-risking investments, where needed, through guarantees and credit enhancement tools. These mechanisms help reduce investment risks and encourage private sector involvement in large-scale projects that might otherwise be too risky for commercial lenders.

Strengthening Policy and Governance

We collaborate with governments to develop supportive policies, institutions, and regulations, and work on improving the technical and financial sustainability of service providers to mitigate risks and enhance their creditworthiness. By improving governance and financial sustainability, we make water projects more attractive to investors, including large institutions like the World Bank and multilateral development banks.

Examples

Hindu religious ritual of bathing and colorful traditional clothing in the Ganges River from the ghats of Varanasi, India.

Cleaning up the Ganga: $1.5B Mobilized Through Replication of PPPs

Replicating India’s first PPP for wastewater management in the Ganga basin has mobilized over $1.5B, including $650M from the private sector. Read more
Two women interacting and smiling in a rural setting.

Scaling Climate-Smart Rice to 1M Indian Farmers

The $325M Uttar Pradesh AGREES project scales WRG’s climate-smart agriculture model to reach 1 million farmers. Read more
Aerial view of Dhaka skyline with densely packed buildings.

Pollution Reduction as Smart Business

WRG working to provide wastewater services to 20 million Bangladeshis with $450M in PPP financing for pollution reduction. Read more

Examples

Finance for water

Scaling up Finance for Water

A WBG Strategic Framework and Roadmap for Action

The strategic framework outlines actions and priorities for national governments, the World Bank Group, and other development partners to improve the planning and mobilization of funding and financing for water sector investments, and to promote efficiency in spending. It aims to do so by optimizing the contributions of the public and private sectors and facilitating greater engagement of the private sector in the provision of capital, innovation, and expertise. 

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